shoe stores

Payless ShoeSource will close 400 underperforming stores in its footwear empire, but all four Southwest Florida stores will stay open at least for now.

The Topeka, Kansas-based company, which is one of the largest specialty family footwear retailers in the country, is the latest retailer to seek protection from its creditors while it reorganizes in federal bankruptcy court.

The company plans to cut 17 stores in the Sunshine State, including locations in Fort Myers and Tampa, according to a list of its U.S. and Puerto Rico closings the company released Wednesday morning.

“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” CEO W. Paul Jones said in a news release.

Payless will continue to operate its stores at 4462 Bee Ridge Road in Sarasota and 641 Cortez Road W. in Manatee County as well as stores in DeSoto Square Mall and Port Charlotte Town Center.

Store closing announcements have become something of a new normal as brick-and-mortar retailers continue to grope for footing in an increasingly online market. Southwest Florida lost its Macy’s at Westfield Sarasota Square last month when the department store chain cut 100 stores from its portfolio. Sears Holdings Corp. announced in January that it plans to close 150 Sears and Kmart stores. The Kmart at the intersection of Fruitville and Beneva roads was shut as part of that cut.

Staples plans to close 70 stores nationwide but hasn’t released a list yet. BCBG Max Azria closed all its stores earlier this year, which took another retailer from the Mall at University Town Center. Abercrombie and Fitch plans to close another 60 U.S. stores, and Radio Shack has filed for bankruptcy for the second time in two years.

Payless said it expects to continue to operate its business, honoring employees’ wages, health care coverage and other benefits without interruption. It also said customers’ existing gift cards with Payless stores and Payless.com will be honored. Future obligations to vendors and suppliers also will be honored.

In its filing, Payless said its assets were worth no more than $1 billion but that its liabilities were at least that large and could be as high as $10 billion. The Chapter 11 filing was made in federal bankruptcy court in St. Louis.

Its largest unsecured creditor, listed in the bankruptcy filing, is Morgan Stanley Senior Funding Inc., which is owed $145 million, according to the filing. It lists 12 other creditors owed more than $4 million each for merchandise.

Payless was founded in Topeka in 1956 and has about 4,400 stores in more than 30 countries and employs more than 25,000 people. It offers fashionable shoes and accessories for the family at moderate prices.

The retailer hired law firm Kirkland & Ellis LLP to look at options for Payless’ $600 million debt load, according to Bloomberg News.

Payless was bought by private equity firms Golden Gate Capital and Blum Capital Partners in 2012 as part of a split of Collective Brands Inc. Moody’s Investors Service and Standard & Poor’s both recently cut the ratings of Payless’ debt, pointing to revenue declines and mounting debt.

Consumers will have full access through the Payless corporate website paylesscorporate.com.